A proposal to order all of Vallejo's medical marijuana dispensaries to immediately cease and desist operations has been squashed in a split City Council vote.

The council also heard public comments on the launch of its 2012-2013 budgeting process, but delayed any votes until absent Councilman Hermie Sunga is present.

Early in Tuesday night's meeting, Mayor Osby Davis proposed sending out dispensary closure notices after hearing from more than a dozen speakers. His proposal failed on a 3 to 3 vote. Voting with him were Council members Erin Hannigan and Robert McConnell. Members Stephanie Gomes, Marti Brown and Bob Sampayan cast the dissenting votes.

The vote came at the tail end of an update on the city's stance towards dispensaries. The council ultimately voted 5-1 in favor of having City Manager Dan Keen send a policy-clarifying letter, and warning, to all dispensaries. Davis voted against the proposal after his amendment was rejected.

Keen's pending letter is expected to include information on the city's new medical marijuana business tax, approved by voters in November, and a reminder that the tax does not provide dispensaries with immunity to law enforcement.

The letters are also to include an explanation of laws the city enforces in regard to dispensaries and a warning that dispensaries are subject to further potential raids. Several raids have occurred since Feb. 21, and operators arrested for allegedly violating state laws.

On another issue, the council heard from several residents who voiced questions, concerns and/or support for a first-time effort at "participatory budgeting." The process would allow non council members to determine how a portion of city funding is spent.

Keen suggested buying some sort of "e-democracy" system, to solicit public input on city budgeting. Keen said such a system could be made public in time for the coming fiscal year's budget process and cost as little as $10,000 -- a purchase funded from the City Manager's Office existing budget.

The council is expected to continue its budgeting process discussion at a special meeting Tuesday night.